Farm Peace IPO announced: ₹27.80 crore issue, what you need to know
- Farm Peace Limited files DRHP for ₹27.80 crore fresh issue IPO with no OFS.
- Proceeds allocated to ₹23.00 crore for working capital and ₹4.80 crore for general corporate purposes.
- Revenue grew 45.21% from ₹62.55 Cr (FY2024) to ₹90.83 Cr (FY2026), while PAT increased to ₹7.53 Cr.
- Key risks include negative operating cash flows in all three years and absence of formal contracts with farmers.
- IPO opens on 01-Sep-2026 and closes on 03-Sep-2026, with listing scheduled for 08-Sep-2026.
*this image is generated using AI for illustrative purposes only.
Farm Peace Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a ₹27.80 crore initial public offering. The Ahmedabad-based integrated contract farming company specializes in processed-grade potatoes for the food processing industry. The entire issue is a fresh issue aimed at funding working capital requirements.
Company Overview
Farm Peace Limited, incorporated in 2021, operates as an integrated contract farming company focused exclusively on processed-grade potato varieties. Based in Ahmedabad, Gujarat, the company engages over 800 farmers across the state under a 100% buy-back model. It cultivates premium potato varieties including Santana, Frysona, Innovators, Lady Rosetta, and Chipsona, which are specifically suited for French fries, chips, and other processed products.
The company acts as an intermediary between farmers and large food processing companies, providing end-to-end agricultural support. This includes seed selection, soil preparation, irrigation guidance, pest management, and post-harvest cold storage. Farm Peace utilizes a proprietary mobile application for farm monitoring. As of FY2026, the company operated on 5,660 acres with an annual production capacity of 61,680 metric tonnes.
Offer Details
The IPO is structured as a fresh issue with no Offer for Sale (OFS). The total net proceeds proposed are ₹27.80 Crore. The issue timeline is set as follows:
- IPO Open Date: 01-Sep-2026
- IPO Close Date: 03-Sep-2026
- Allotment Date: 04-Sep-2026
- Listing Date: 08-Sep-2026
Price band, lot size, and reservation details are not yet available in the DRHP data.
Objects of the Issue
The proceeds will be utilized as follows:
- Funding Incremental Working Capital Requirements: ₹23.00 Crore (82.73%)
- General Corporate Purposes: ₹4.80 Crore (17.27%)
The working capital infusion will fund seed procurement, farmer support payments, cold storage costs, and receivables management. There is no capital expenditure allocation in this issue.
Financial Highlights
Farm Peace reported consistent revenue growth over the last three fiscal years. However, profit margins have compressed slightly as expenses grew faster than revenues during the scale-up phase. Operating cash flows have remained negative across all three years.
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations (₹ Cr) | ₹62.55 Cr | ₹79.24 Cr | ₹90.83 Cr |
| Total Expenses (₹ Cr) | ₹53.54 Cr | ₹70.32 Cr | ₹80.00 Cr |
| Profit Before Tax (₹ Cr) | ₹9.21 Cr | ₹9.65 Cr | ₹10.84 Cr |
| Net Profit / PAT (₹ Cr) | ₹6.16 Cr | ₹6.66 Cr | ₹7.53 Cr |
| PAT Margin (%) | 9.82% | 8.33% | 8.29% |
| Operating Cash Flow (₹ Cr) | -₹1.54 Cr | -₹17.57 Cr | -₹7.17 Cr |
Total assets grew from ₹31.76 Crore in FY2024 to ₹99.84 Crore in FY2026. The company’s balance sheet is predominantly current-asset heavy, reflecting its working-capital-intensive business model. Total equity stood at ₹43.48 Crore in FY2026.
Risk Factors
Investors should consider the following material risks highlighted in the DRHP:
- Absence of Formal Contracts: The company operates through verbal arrangements with farmers without formal written contracts, creating supply chain uncertainty and counterparty risk.
- Negative Operating Cash Flows: Despite profitability, the company reported negative operating cash flows in all three fiscal years (FY2024: -₹1.54 Cr; FY2025: -₹17.57 Cr; FY2026: -₹7.17 Cr), relying on financing activities to sustain operations.
- Geographic Concentration: 100% of operations are concentrated in Gujarat, exposing the company to region-specific climatic and regulatory risks.
- Customer Concentration: Top 10 customers accounted for 80.68% of potato sales in Fiscal 2026, posing a risk if key buyers alter procurement policies.
- Seasonal Dependence: Business is entirely dependent on Rabi season agro-climatic conditions, where adverse weather can impact production quantity and quality.
Valuation & Peer Comparison
Peer comparison data is not available in the provided DRHP. The price band and face value have not been disclosed. Investors should evaluate the valuation once the final RHP is filed with price band details. The company operates in a niche segment with limited direct listed peers.
Bottom Line
Farm Peace Limited presents a niche investment case in the processed-grade potato supply chain, backed by strong revenue growth and an expanding farmer network. However, the absence of formal farmer contracts and persistent negative operating cash flows are significant structural concerns. The IPO proceeds are entirely directed toward working capital, with no capex for capacity expansion. Investors should monitor the company's ability to convert profits into positive operating cash flows post-listing.
How might the absence of formal written contracts with farmers impact Farm Peace's supply chain stability and risk profile post-listing?
What specific strategies will management employ to convert persistent negative operating cash flows into positive figures despite reported profitability?
Given the 100% geographic concentration in Gujarat, how exposed is the company to region-specific climatic shocks or regulatory changes?
20
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
